shareholders got a gift Tuesday, as the banking and financial services concern disclosed plans to boost its dividend and buy back additional stock.
The Charlotte, N.C., company's board approved an 11% increase in the regular quarterly dividend to 51 cents a share, up from the current 46 cents. The new dividend rate will be paid Sept. 15 to shareholders of record Aug. 31.
Also, Wachovia's board authorized the additional repurchase of up to 100 million shares to go along with previous buybacks under which about 50 million shares remained as of June 30.
"Today's announcement reflects our board's confidence in Wachovia's performance and prospects for consistently growing earnings while maintaining a strong capital position," the company said in a press release. "This increase is consistent with our stated guideline for dividend payout. We are pleased to ensure that our shareholders benefit from the company's success."
Shares of Wachovia were up 12 cents to $50.31.